Luzius Meisser, the chairman of cryptocurrency company Bitcoin Suisse in the European Union, has already stated his opinion on the “optimal strategy” to preserve the European Union’s digital asset market. In which the aforementioned chairman asserted that creating a firewall to isolate cryptocurrency from the established banking system is the wisest course of action.
The head of Bitcoin Suisse went on to say that Zug, one of the four initiatives unveiled by the Swiss company, may be advantageous for both cryptocurrencies and traditional finance. Meisser explicitly discussed the “containment” approach when he said that the goal of EU legislators is to do just that—contain cryptocurrency.
The old banking system will be “shielded” from the toxicity of the crypto economy, he continued, as their primary goal. On the other hand, it would also serve as a defense for cryptocurrencies against the flaws of conventional financial systems.
E.U. Lawmakers on Crypto
Recently, the respective EU. Lawmakers decided to put stringent requirements on banks wishing to retain cryptocurrency. Accordingly, the aforementioned firms are required to hold one euro of their own capital for each euro held in cryptocurrency. According to reports, the requirements listed reflected the standards established by the industry’s international standard-setter, the Basel Committee on Banking Supervision.
According to the report, the said restrictions are expected to take effect by 2025, where traditional banks’ exposure to cryptocurrency would be limited, capped at 2%. Meisser has stated that the crypto banking rules that was allegedly proposed by the said committee is deemed to be “more extreme.”
That was clarified by the chairman of Bitcoin Suisse, who said that each bitcoin the bank holds for a client should have an additional bitcoin added to it as equity. Then he continued, “You cannot have a regular bank account where the client merely has a claim in bitcoin.” He concluded by saying, “It practically outlaws banking with bitcoin.”
Meisser continued by saying that one of the rules of the aforementioned set of Committee was that cryptocurrency would not be regarded as collateral, which would ostensibly make it more difficult for a bank to grant a client a loan in the future. He went on to say that doing so would merely give banks the green light to hold cryptocurrency for their customers.
He continued by saying that lawmakers are unlikely to outright prohibit cryptocurrency since doing so would not sit well with the liberal political establishment. He added that politicians are also unlikely to adopt a laissez-faire attitude and let the market settle disputes on its own because doing so would blatantly “contradict their own mission” and render them “obsolete.”